What is the nature of your real estate market? Glad you asked.
The real estate market is a dynamic and fickle beast. It varies block to block. There’s no sweeping generalization you can make about an entire city’s market, for example. So, you should know what the nature of your particular market is. Primarily, there are two types of real estate markets – buyers markets and sellers markets.
A buyers’ market is where there are a majority of properties waiting to be bought.
A sellers’ market is where there a few properties to be sold, and a lot of demand for each of them.
So, now that we’ve established that, let’s establish how you should proceed in each of these markets.
1. Buyers’ Market
• How To Sell
Selling can be tough in a buyers’ market because there are many options for the buyers to choose from. The only way to sell your property in such a market is to advertise yourself well, and making sure your house is ready to be sold.
When you’re in such a market, you have to price your property competitively. If you wait too long, the demand might wane. Before you list your property for sale, make sure it is completely cleaned up and looks good. Make sure your property makes a great first impression to give yourself the highest chance for a sale.
• How To Buy
Oh, to be a buyer in a market like this. You’ve got plenty of options to choose from, and sellers are clamoring for your time.
When you’ve got the luxury of choosing from a wide range of properties, take your time to explore the market. Look for sellers that strike the right chord with you. Ask them why they are selling, and how soon you can move in once you make the purchase. You might need to make some repairs and cosmetic changes to the property. But once the area rises in value, you’ll have a good investment on your hands.
2. Sellers’ Market
• How To Sell
If you’re a seller in a market like this, you’ll probably be flooded with options. Your property is in high demand and there are lots of people who want it. Even so, you shouldn’t get lazy. Make sure your property is in great condition before you show it to potential buyers.
When you’re evaluating multiple offers, look for the people who seem most committed to the sale, and not just those who bid a higher price. You don’t want to be stranded midway through negotiations. Look for people who have good financial records and have been looking for a while. These are buyers who will be more motivated to close a deal than people who’ve just started looking.
• How To Buy
If you’re a buyer, you’ll be competing with a lot of other people to get the good properties. If you have a day job, finding a house in a competitive market might become extremely time-consuming. In such a situation, get in touch with an expert who can do the scouting on your behalf. When you find an opportunity, don’t waste too much time pondering an offer. You might lose it if you’re very indecisive. When you meet sellers, put your best foot forward and try to cultivate good relationships with them.
In summation, depending upon the kind of market you are in, you have to adapt your approach to buying and selling properties. There are plenty of research tools available online nowadays. Use them to make sure you know what you’re getting yourself into.